NAST discusses philippine manufacturing sector

Manila, Philippines --- The National Academy of Science and Technology (NAST) yesterday continued dissecting the state of the Philippines' manufacturing sector, leading towards the 35th Annual Scientific Meeting (ASM) on July 10-11 at the historic Manila Hotel.

NAST is one of the 20 attached agencies of the Department of Science and Technology (DOST).

It gives recognition to "outstanding" feats in S&T and bestows "meaningful incentives" to researchers in S&T.

Led by Academician William G. Padolina, NAST Philippines conducted in Alabang, Muntinlupa City, another in a series of its fora, this time the Roundtable (RTD) Discussion on Food Manufacturing: Preparing for 2015.

NAST's series of RTDs revolves around ASM's theme in 2013, Harnessing Science and Technology: Reversing the Decline of the Manufacturing Sector in the Philippines.

The year 2015 refers to the goal of the Association of Southeast Asian Nations (ASEAN) to create the ASEAN Economic Community (AEC), an "economic integration" aimed at transforming the 10 member-countries "into a single market and production base."

ASEAN is composed of the Philippines, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.

Dr. Erlinda I. Dizon, a professor at the Institute of Food Science and Technology of the University of the Philippines-Los Baños (UPLB), cited the state of the Philippine manufacturing sector.

"The Philippine economy over the past years has been characterized by a reduced share of manufacturing sector in the country's gross domestic product (GDP) and declining gross domestic investment rate, exports and competitiveness compared with neighboring countries," said Dizon.

She blamed the increase of production cost to a triumvirate of obstacles, such as red tape, expensive power, and inefficient transportation network.

The UPLB educator also pointed to problems arising from infrastructure and communication that "hinder access to raw materials and distribution of goods and services to consumers."

Dizon was a reactor to the paper called Philippine Food Manufacturing Industry: Current Status, Issues and Concerns delivered by Ms. Rita Imelda B. Palabyab, president of San Miguel Foods, Inc.

Palabyab noted local products' competitiveness in the global market, adding Filipino-made brands dominate the domestic packaged food sector.

She credited this development to a number of factors, such as overseas Filipino workers' (OFWs) "improving disposable income" remitted to the country; rising middle class, urbanization, life-style changes; rise of single households; and growth of the business process outsourcing (BPO) industry.

In lifestyle changes, Palabyab gave as examples ready-to-cook, ready-to-eat, on-the-go food, and health and wellness.

"Food manufacturing remains one of the largest and most dynamic industries in the country," she said, citing its value in 2012 at P977.2 billion, which is nine percent of GDP and 45 percent of the whole manufacturing industry of the country.

On the other hand, she cited some challenges facing the manufacturing sector, including dependence on imported raw materials, the need for innovations in technology, and ability to sustain delivery of the required level of quality and food safety.

"There is the constant challenge of surviving in the open ASEAN Economic Community," said Palabyab.

To go forward, she recommended enabling structures and support from government to a private sector-led response.

Meanwhile, Ms. Edith de Leon, head of Corporate Affairs of Nestle Phils. Inc., spoke about the topic entitled The Philippine Food Industry: Are We Ready for ASEAN 2015?

She said in the ASEAN 2015, to be integrated into a single market includes tourism, food products, agro-based products, automotive, e-commerce, electronics, textiles, logistics, cosmetics, and other sectors later to be identified by the bloc.

Sourced: Cambodia News